Climate Change Data

Environmental Metrics

ESG Focus Areas

• Occupational safety and health
• Talent cultivation and development
• Prevention of child labour and forced labour
• Wastewater discharge
• Product safety and quality
• Intellectual property rights
• Customer satisfaction
• Law-compliant operation

Environmental Achievements

• Obtained ISO14001:2015 Environmental Management System Certification
• Reduced total emissions (Scope 1 and 2) from 17,766.47 tonnes CO2-e in 2018 to 19,084.60 tonnes CO2-e in 2019 (increase likely due to increased production)
• Reduced energy consumption density (per thousand meters of fabrics) from 1.42 kWh in 2018 to 1.82 kWh in 2019 (increase likely due to increased production)
• Reduced water consumption density (per thousand meters of fabrics) from 4.75 m3 in 2018 to 5.99 m3 in 2019 (increase likely due to increased production)
• Reduced waste density (per thousand meters of fabrics) from 6.05 kg in 2018 to 7.35 kg in 2019 (increase likely due to increased production)

Social Achievements

• No material breaches of relevant laws and regulations in the employment and labour standards.
• No work-related fatalities or injuries.
• Customer satisfaction improved to 97.6% in 2019 (0.9% increase from previous year).
• Implemented various training programs covering sales techniques, quality management, intellectual property rights, financial knowledge, foreign trade risk control, and laws and regulations.
• Provided dormitories for employees from other provinces.

Governance Achievements

• Established a risk management system and conducts regular risk assessments.
• Complied with relevant laws and regulations regarding product quality, advertising, intellectual property rights, and customer data privacy.
• Obtained certification for nationally recognized “Enterprise Intellectual Property Rights Management Regulations” (GB/T29490-2013).

Climate Goals & Targets

Environmental Challenges

• Maintaining product quality in a changing market environment.
• Managing environmental impacts from energy consumption, waste generation, and emissions.
• Ensuring customer satisfaction.
• Maintaining compliance with various laws and regulations.

Mitigation Strategies

• Annual quality plan review, detailed review procedures, regular product testing, and ISO9001:2015 certification.
• Implementation of energy conservation measures, waste reduction initiatives, and compliance with environmental regulations.
• Regular customer satisfaction surveys and complaint handling procedures.
• Internal audit function, risk management system, and compliance with relevant laws and regulations.

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 20 to the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited

Certifications: ISO14001:2015, ISO9001:2015, Intellectual Property Management System Certification Certificate

Environmental Metrics

ESG Focus Areas

• Occupational safety and health
• Prevention of child labour and forced labour
• Greenhouse gas emissions
• Air emissions
• Treatment of non-hazardous wastes
• Anti-fraud and anti-corruption and related training
• Disaster emergency plan
• Assessment of suppliers’ environmental and social performance
• Anti-money laundering system
• Product safety and quality
• Intellectual property rights
• Protection of customers’/ consumers’ privacy
• Handling of customers’ complaints
• Customer satisfaction
• Legal-compliant operation

Environmental Achievements

• Obtained ISO 14001:2015 Environmental Management System Certification
• Reduced total emissions (Scope 1 and 2) from 19,084.60 tonnes CO2-e in 2019 to 13,411.10 tonnes CO2-e in 2020
• Reduced total energy consumption from 27,201.61 MWh in 2019 to 16,717.29 MWh in 2020
• Reduced total water consumption from 89,659.00 m3 in 2019 to 81,567.00 m3 in 2020
• Reduced total volume of non-hazardous waste generated and disposed from 110.00 tonnes in 2019 to 255.00 tonnes in 2020 (Note: This seems contradictory and requires further clarification from the report)

Social Achievements

• Obtained ISO 45001:2018 certification for occupational safety and health
• No work-related fatalities or injuries reported
• Implemented COVID-19 prevention and control measures
• Provided various trainings to employees, with an average of 5.45 training hours per employee in 2020
• Maintained customer satisfaction rate at 97.7%

Governance Achievements

• Established a risk management system
• Implemented anti-corruption policies and guidelines
• Established confidentiality system to protect customer data
• Complied with relevant laws and regulations concerning corruption, bribery, extortion, fraud and money laundering

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact
• Maintaining product quality in a changing market environment
• Managing environmental emissions and waste

Mitigation Strategies

• Implemented COVID-19 prevention and control measures
• Regularly fine-tuned and improved quality management systems
• Actively sought solutions to control emissions and waste, including waste reduction initiatives

Supply Chain Management

Supplier Audits: Regular visits and assessments of major suppliers

Responsible Procurement

• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 20 to the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Environmental Metrics

ESG Focus Areas

• Talent cultivation and development
• Occupational Health and Safety
• Prevention of child labour and forced labour
• Employment Rights
• Air emissions
• Emission Management
• Treatment of non-hazardous wastes
• Creating Value for the Environment
• Treatment of hazardous wastes
• Waste Management
• Use of resources
• Emission Management and Water Resource Management
• Assessment of the impact on the surrounding environment
• Creating Value for the Environment
• Assessment and management of suppliers’ environmental and social performance
• Supplier Management
• Anti-fraud and anti-corruption and related training
• Anti-corruption
• Disaster emergency plan
• Occupational Health and Safety
• Intellectual property rights
• Protection of Intellectual Property Rights
• Privacy protection of customers/consumers
• Confidentiality of Customer Data
• Handling of customers’ complaints
• Customer Satisfaction
• Compliant operation
• Creating Values for Customers, Creating Values for Employees, Creating Values for the Environment

Environmental Achievements

• Successfully obtained ISO 14001:2015 Environmental Management System Certification
• Reduction in total emissions (Scope 1 and 2) from 16,554.03 tonnes CO2-e in 2019 to 10,694.69 tonnes CO2-e in 2021
• Reduction in total energy consumption from 27,201.61 MWh in 2019 to 17,573.69 MWh in 2021

Social Achievements

• No material non-compliance with relevant laws and regulations in the employment and labour standards of the Group.
• No material complaints received during the Reporting Period related to product quality.
• Provided a total of 504 hours of training to employees during the Reporting Period.
• No work-related fatalities, injuries, or lost workdays due to work-related injuries during the Reporting Period.

Governance Achievements

• Established a complete management system responding to occupational health and safety management
• Formulated the Employees’ Handbook, covering policies and guidelines on anti-corruption.
• Implemented the Supplier Integrity Agreement to ensure compliance with company policies and local laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Extreme weather conditions (typhoons, rainstorms, floods) may disrupt production, supply of raw materials, transportation, and employee safety.
• Increasing customer environmental and social requirements for products.
• Potential tightening of environmental laws and regulations by the PRC and Hong Kong governments.

Mitigation Strategies

• Formulated the Emergency Plan for Preventing Typhoon and Flood.
• Regularly monitor weather conditions and government guidelines on climate change.
• Update company policies and measures to mitigate climate-related risks.
• Implement energy conservation measures (e.g., turning off idle equipment, restricting air conditioner use).

Supply Chain Management

Supplier Audits: Regular on-site visits to major suppliers.

Responsible Procurement

• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons, rainstorms, floods)

Transition Risks

• Market risk (increasing customer environmental and social requirements)
• Policy and legal risks (tightening environmental regulations)

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 20 to the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Environmental Metrics

ESG Focus Areas

• Creating Value for Customers
• Creating Value for Employees
• Creating Value for the Environment
• Creating Value for the Society

Environmental Achievements

• Successfully obtained ISO 14001:2015 Environmental Management System Certification
• Reduced total emissions (Scope 1 and 2) from 8,927.19 tonnes CO2-e in 2022 to 3,596.45 tonnes CO2-e in 2023
• Reduced energy intensity (calculated per thousand meters of fabrics) from 1.59 KWh in 2022 to 1.07 KWh in 2023
• Reduced water intensity (calculated per thousand meters of fabrics) from 8.23 m3 in 2022 to 15.57 m3 in 2023

Social Achievements

• Provided a total of 112.5 hours of training to employees
• Maintained a high level of customer satisfaction, with an average satisfaction rate of 97.25%
• Zero work-related fatalities and injuries during the reporting period.
• No material non-compliance with relevant laws and regulations in the employment and labor standards of the Group.

Governance Achievements

• Established a detailed Employee Handbook, which includes clear anti-corruption policies and guidelines.
• Implemented a systematic supply chain management process, integrating environmental protection and social responsibility into all aspects of supplier management.
• Conducted training on anti-corruption matters to strengthen employees’ understanding of the importance of integrity, honesty and compliance with laws.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (typhoons, rainstorms) disrupting production, supply chains, and employee work.
• Increasing customer and market demands for environmentally and socially responsible products and suppliers.
• Potential tightening of environmental laws and regulations leading to increased costs and compliance burdens.

Mitigation Strategies

• Formulated an “Emergency Plan for Preventing Typhoon and Flood”, defining procedures for preparation and response.
• Actively promoting green operations and social responsibility, reviewing and updating environmental and social measures.
• Closely monitoring government guidelines on climate change and updating company policies and measures accordingly.

Supply Chain Management

Supplier Audits: Annual audits implied, number not specified

Responsible Procurement

• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons, rainstorms)

Transition Risks

• Market risks related to customer demands
• Policy and legal risks related to environmental regulations

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix C2 to the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018